RAREX LIMITED — Capital/Financing Update 2017

Nov 30, 2017

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text -----

Clancy Exploration Limited Phone:(08) 6143 6720
Suite 23, 513 Hay Street
Subiaco WA 6008 www.clancyexploration.com
Australia info@clancyexploration.com
----- End of picture text -----

ASX / MEDIA ANNOUNCEMENT 01 December 2017

Acquisition of Highly Prospective Pilbara Gold Project

• Clancy to acquire Hong Kong Gold Project in highly prospective Pilbara region.

• Granted licence tenure of 40km[2] with a prospective strike length of over 5km.

• Mapping outlines presence of highly prospective lower Fortescue Group lithologies.

• Lithologies recently identified by Novo Resources (TSX-V: NVO) as “the key stratigraphy to the recent new conglomerate gold discoveries within the region”

• Project includes historical eluvial and alluvial gold mines located at Hong Kong Far West, Empress North and John Bull West.

• Better high grade rock chip samples across project tenure include:

• 71.4g/t Au from John Bull Prospect

• 45.5g/t Au & 6.9g/t Au from Last Chance Prospect

• 33.2g/t Au from Princess May South Prospect

• 14.9g/t Au from Foochow Prospect

• 5.4g/t Au from Hong Kong Prospect

• Exploration program to commence immediately, subject to clearance from native title parties.

Clancy Exploration Limited (ASX: CLY) is pleased to announce that it has reached an agreement to acquire the Hong Kong Gold Project (the “Project” ) located in the Pilbara region of Western Australia (Figure 1).

The project contains over five strike kilometres of lower Fortescue Group rocks including both the Hardey Formation and the Mount Roe Basalt, as mapped by the Geological Survey of Western Australia (GSWA). Novo Resources describe this stratigraphy as being “the key to the recent new conglomerate gold discoveries in the region”.

Previous explorers have also targeted Archaean lode hosted gold mineralisation and VMS mineralisation.

==> picture [561 x 20] intentionally omitted <==

----- Start of picture text -----

1
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Figure 1: Location of Hong Kong Tenement – Western Pilbara

==> picture [312 x 360] intentionally omitted <==

Location, Infrastructure & Tenure:

The Project is located 100km south-southwest of Port Hedland in the Western Pilbara Goldfield of Western Australia. Access to the Project is via the sealed Great Northern Highway for 100km south of Port Hedland thence via good quality graded roads.

The Hong Kong Gold Project consists of a single Exploration Licence, 47/3566, covering 40km[2] with an expiry date of 19 July 2022.

The exploration licence is located wholly within the Yandeyarra Aboriginal Reserve.

Project Geology:

GSWA mapping has outlined a highly prospective >5km strike length of the basal contact between the Mt Roe Basalt and older Archaean Basalt.

The Mt Roe Basalt forms as distinctive red ridges with well-developed scree slopes. The Hardey Formation essentially comprises of conglomerate with a few minor interbedded sandstone occurrences. The polymictic conglomerate includes clasts

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

2
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

of basalt, chert, granite, shale, dolerite and other lithologies with diameters up to 1m. The clasts are rounded to angular.

Numerous prospecting workings (dryblowing) were located along creeks draining from the conglomerate.

==> picture [266 x 391] intentionally omitted <==

Figure 2: Hong Kong Project- Geology & Occurrences

The Archaean Pilbara Well Greenstone belt crops out southeast of the Lower Fortescue Group lithologies. The greenstone belt includes metabasalts, ultramafics and silicified sediments which have been metamorphosed and deformed by up to three phases of ductile deformation.

Historical Exploration & Mining:

John Bull

The John Bull workings have collapsed obscuring the scale of the historical operations. A tight, sub-vertical fault with quartz veins that strike 025[o] lies exposed in a 40m deep shaft developed in carbonated mafic rock at the main cluster of workings. Mullock includes minor quartz-carbonate vein material. Quartz porphyry occurs immediately west of the main workings.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

3
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

A shallow pit sunk into fresh metabasalt, 100m east of the main workings, has exposed deformed quartz-carbonate-chlorite veins with apple green sericite and disseminated native gold. Rock chip sampling of the quartz-carbonate veining has reported up to 71.4g/t gold.

==> picture [313 x 456] intentionally omitted <==

Figure 3: Regional Geology & Mineral Occurrences

Last Chance

Last Chance workings comprise of a 4m deep stope extending for 20m on a 20cm wide quartz-carbonate vein. Chip samples from laminated quartz veins reported results of up to 45.5 g/t gold.

Princess May

Historical workings extend over 150m strike length. A tight fault with quartz veins striking 015 to 025[o] and dipping 65-70[o] East, is exposed in several shafts and stopes

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

4
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

developed to a maximum depth of 40m. Mullock samples include variably altered chlorite-carbonate-sericite mafic rock. Laminated quartz-carbonate veining contains limonite pseudomorphs (after sulphide) and lamellae of apple-green sericite. Sampling of the quartz-carbonate vein material reported up to 33.2 g/t gold.

Foochow

Foochow is a series of pits and stopes that extend over a strike of 70m, to around 10m depth. Mullock dumps carry chlorite-carbonate-sericite altered dolerite commonly with limonite pseudomorphs. A single rock chip sample taken of laminated quartz vein material reported 14.9 g/t gold.

Empress

Empress workings comprise of a deep shaft to approximately 40m and stoping has occurred over 50m strike length. Mullock material surrounding the shaft is massive to weakly foliated dolerite, variably altered to chlorite-carbonate-sericite. Numerous small quartz-carbonate-pyrite veins cut the altered dolerite. Sampling of laminated quartz vein material, north of the workings, reported 11.2 g/t gold.

Hong Kong

Hong Kong is represented by a group of workings comprising of a 20m shaft and two stopes of similar depth located over northeast-striking structures developed in altered mafic rock, including dolerite. More workings extend 160m north-northeast of Hong Kong where a 10m deep shaft and stopes extend over 40 metres of strike.

Mullock dumps indicate extensive chlorite-carbonate alteration of mafic host rocks and laminated quartz-carbonate veins. More intense alteration in narrow proximal zones (adjacent to veins) comprise of bleached zones of sericite and carbonate. Sampling of quartz vein material reported results of up to 5.35 g/t Au.

Empress East #2

A 40m long series of stopes and pits. The deepest extent of workings is approximately 10m. Mullock is massive but strongly carbonated mafic lithologies with small quartzcarbonate veining and apple green sericite on vein margins. Altered wall rock sample reported 0.054 g/t Au.

Arizona

Arizona is located a few hundred metres east of the Princess May workings. The strong carbonate alteration evident suggests that Arizona lies within the John Bull Shear Zone. Sampling conducted across a variety of styles of alteration and mineralisation reported values up to 1.24 g/t gold in a quartz-chlorite porphyry. The porphyry is similar to that observed at John Bull.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

5
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Commercial Terms

Clancy Exploration Ltd has reached agreement to acquire 100% of the Hong Kong Project from Red Field Pty Ltd via the issue of 270,000,000 fully paid ordinary shares at an issue price of $0.005 per share, for a total value of $1.35 million. The issue of the consideration shares falls within Clancy’s existing ASX Listing Rule 7.1 placement capacity.

Competent Persons Statement:

The information in this announcement that relates to the Exploration Results for Hong Kong Gold Project is based on information compiled and fairly represented by Mr Jonathan King, who is a Member of the Australian Institute of Geoscientists and Consultant to Clancy Exploration Ltd. Mr King has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr King consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Please direct enquiries to: Scott Patrizi Phone: +61 8 6143 6720 Email: info@clancyexploration.com Web: www.clancyexploration.com

Disclaimer:

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

6
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

APPENDIX 1: Rock Chip Sampling Results

Sample	Easting	North	Prospect	**Auppm **	Description
55121	637,233	7,657,911	Arizona	0.06	Chertpyriticquartz vein
55122	637,209	7,657,920	Arizona	0.015	Chert with malachite stain
55123	637,214	7,657,494	Arizona	0.045	Pyriticquartzporphyry
55124	637,305	7,657,500	Arizona	0.011	Carbonated mafic
550076	637,779	7,657,651	Arizona	0.005	Quartz vein in carbonated basalt
550077	637,777	7,657,660	Arizona	0.889	Quartzporphyrywith coarsepyrite
550078	637,775	7,657,665	Arizona	0.22	Quartz vein in carbonated mafic
550079	637,780	7,657,692	Arizona	0.012	Carbonated and bleached mafic
550080	637,773	7,657,742	Arizona	0.075	Quartz porphyry with quartz stingers and coarsepyrite. Sheared@040
550081	637,786	7,657,756	Arizona	0.008	Quartz vein with carb and chlorite alteration from mafic from
550082	637,984	7,657,409	Arizona	0.422	Quartz vein with carbonate and tourmaline
550083	637,748	7,657,748	Arizona	0.109	Weak quartz stringers in quartz porch and weakpyrite
550084	637,974	7,657,382	Arizona	0.025	Carbonatedgreywacke
550085	637,961	7,657,382	Arizona	0.006	Quartz carbonate chlorite vein on contact between greywacke and basalt. Sheared@110o
550086	637,978	7,657,378	Arizona	0.014	Quartz carbonate vein in greywacke. Quartz stringers normal to vein trend @110o
550087	637,644	7,657,632	Arizona	0.072	Quartz stingers and quartz chlorite vein inquartzporphyry
550088	637,644	7,657,627	Arizona	0.011	Quartz vein ingreywacke
550089	637,651	7,657,628	Arizona	0.015	Quartz‐carb vein ingreywacke
550090	637,590	7,657,599	Arizona	0.025	Pyritic aplite with fine grained disseminated pyrite. Dark grey when fresh. Strike 100o
550091	637,585	7,657,603	Arizona	0.145	Blue‐grey pyritic chert. Strike 100o
550092	637,589	7,657,614	Arizona	0.003	Quartz vein in greywacke. Foliation 100o
550093	637,588	7,657,550	Arizona	0.033	Pyritic blue‐grey chert. Strike 230o. Dip32otowards NW
550094	637,604	7,657,544	Arizona	1.24	Quartz‐chlorite porphyry. Pyritic and quartz veined. Strike 075o
550095	637,604	7,657,548	Arizona	0.107	Sheared basalt with quartz carbonate veins. Foliation 095o
550096	637,416	7,657,137	Arizona	0.043	Quartzporphyrywithpinkquartz
550097	637,412	7,657,146	Arizona	0.009	Silicified and sheared greywacke with minorquartz stingers

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

7
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample	Easting	North	Prospect	**Auppm **	Description
550098	637,405	7,657,155	Arizona	0.359	Quartz‐chlorite porphyry. Pyritic and quartz veined.
550099	637,411	7,657,173	Arizona	0.33	Quartz‐feldspar porphyry with pyrite andquartz veins
550100	637,389	7,657,150	Arizona	0.427	Quartz‐veinedgreywacke
550208	637,400	7,657,092	Arizona	0.006	Red pyritic and quartz veinlets in small felsicporphyry
550209	637,399	7,657,091	Arizona	0.013	Qtz‐crb‐pyr veinlets in crb altered sheared mafic
550210	637,386	7,657,086	Arizona	0.004	Vfg greyfelsic dyke
550211	637,361	7,657,101	Arizona	0.005	Qtz crb veinlets in sheared mafic‐ crb altered
550212	637,346	7,657,096	Arizona	0.709	Red siliceous mafic with qtz veinlets andpyr alteration
550213	637,348	7,657,165	Arizona	0.2	Red grey siliceous porphyry‐ fine grained mafic porphs‐ crb‐pyrite altered
550214	637,405	7,657,152	Arizona	0.006	Red grey siliceous felsic porph with crb alt and tracepyr
550215	637,404	7,657,153	Arizona	0.026	Qtz crb veinlets in mafic along porph (550214)contact
550216	637,422	7,657,154	Arizona	0.164	Lightgrey qtz felsicporph w trpyr
550217	637,436	7,657,163	Arizona	1.14	Light grey felsic qtz porph sl. Weathered w 5%pyrpseudo's
550218	637,414	7,657,183	Arizona	0.153	Red grey siliceous and crb alt porph w trpyr on hill
550219	637,444	7,657,273	Arizona	0.07	Light grey qtz feldspar porph w pyr pseudo's 1% and traceqtz veinlets
550220	637,423	7,657,304	Arizona	0.958	Red dk grey fractured porph with mafic crysts‐ silca crb alt‐ tr pyr pseudo's and 10%qtz veinlets
550221	637,412	7,657,323	Arizona	0.554	Veining and silca crb alt country rock on nth side of slope
550222	637,499	7,657,352	Arizona	0.616	Dk grey red fractured siliceous porph finegrained
550223	637,497	7,657,352	Arizona	0.074	Country rock with qtz crb veins on contact with 550222
550224	637,509	7,657,344	Arizona	0.128	Lightgrey qtz feldsporph‐ trpyr
550225	637,528	7,657,308	Arizona	0.007	Dk grey siliceous vfg with fg fresh pyr (trace)mafic crysts dyke
550226	637,465	7,657,191	Arizona	0.227	Lightgrey qtz feldsparporph
550305	637,729	7,657,343	Arizona	0.017	Strongly carbonate altered basalt with quartz carbonate veins
550401	636,998	7,656,601	Arizona	0.262	Quartz porphyry with quartz stringers. Minorpyrite. Strike 050

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

8
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample	Easting	North	Prospect	**Auppm **	Description
550402	637,014	7,656,568	Arizona	0.01	Pyritic greywacke. Minor pyrite. Chlorite and carbonate alteration.
550403	636,938	7,656,566	Arizona	0.275	Quartzporphyrywithquartz veins
550404	636,943	7,656562	Arizona	0.015	Weakly quartz veined basalt. Some quartz carbonate veining
550405	636,907	7,656473	Arizona	0.024	Quartz‐tourmaline vein along fault in carbonate altered greywacke. Dip 27‐ Strike 056o
550406	636,891	7,656453	Arizona	1.21	Quartz vein in carbonatedgreywacke
550407	636,897	7,656503	Arizona	0.237	Quartz‐porphyrywithquartz stringers
550408	636,811	7,655938	Arizona	0.2	Quartz‐feldspar porphyry with quartz veins and minorpyrite
550409	636,815	7,655926	Arizona	0.24	Pyritic blue‐greychert.
550410	636,771	7,655947	Arizona	0.18	Pyriticquartz‐feldsparporphyry
550411	636,800	7,655993	Arizona	0.082	Carbonated sediments (greywacke) with carbonate veining
550412	636,805	7,655980	Arizona	0.032	Sheared chloriticgreywacke
550413	636,856	7,656125	Arizona	0.002	Quartz and fuchsite altered felsic rock with quartz stingers and minor carbonate alteration.
550414	636,843	7,656140	Arizona	0.003	Quartz and fuchsite altered felsic rock withquartz vein
550415	636,841	7,656147	Arizona	0.003	Quartz‐carb veined basalt
550416	636,825	7,656150	Arizona	0.007	Quartz and fuchsite altered felsic rock withquartz vein
550417	636,812	7,656159	Arizona	0.001	Sheared mafic with quartz vein and carb and fuchsite alteration
550418	637,207	7,655997	Arizona	0.002	Silicified and carbonated felsic intrusive
550419	637,201	7,656036	Arizona	0.009	Silicified and ferruginised mafic
550420	637,392	7,656504	Arizona	0.464	Quartz‐carb veined mafic with quartz‐ tourmaline veins
550421	637,384	7,656521	Arizona	0.01	Quartz porphyry with quartz‐ tourmaline veins andquartz stringers
550422	637,726	7,656735	Arizona	0.002	Silicified and quartz veined zone next to sheared mafic
550423	637,732	7,656736	Arizona	0.001	Sheared basalt. Carbonated. Foliation 090o
550424	637,725	7,656743	Arizona	0.002	Silicified basalt with minorpyrite
550425	638,329	7,657227	Arizona	0.003	Basalt with minorquartz vein
550426	638,320	7,657222	Arizona	0.002	Quartz‐feldsparporphyry
550427	638,347	7,657230	Arizona	0.004	Quartz veinedgreywacke
550428	638,369	7,657241	Arizona	0.004	Quartz‐feldspar porphyry with chlorite alteration
55113	633,915	7,658078	Empress	0.038	Altered dolerite

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

9
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample	Easting	North	Prospect	**Auppm **	Description
55112	634,457	7,657997	Empress East	0.054	Carbonated mafic + veins
55118	631,594	7,655,955	Empress Well North	11.2	Laminated quartz vein
55119	631,627	7,655,972	Empress Well North	0.099	Choratised basalt
55120	631,627	7,655,972	Empress Well North	9.54	Laminated quartz sulphide vein
55111	634,336	7,657,211	Foochow	14.9	Laminatedquartz vein
55105	633,573	7,656,461	Hong Kong	0.958	Laminated quartz vein
55106	633,573	7,656,461	Hong Kong	0.058	Serecite carbonate alteration
55107	633,553	7,656,464	Hong Kong	5.35	Quartz vein
55051	635,758	7,655,283	John Bull	0.134	Quartzporphyrywithpyrite
55052	635,617	7,655,024	John Bull	0.007	Carbonated mafic
55053	635,616	7,655,006	John Bull	71.4	Quartz carbonate vein
55054	635,716	7,654,970	John Bull	10.1	Mafic rock withQuartz chlorite veins
550235	635,208	7,654,530	John Bull	0.233	Small qtz veinlets in light grey qtz feldsparporph
550236	635,246	7,654,535	John Bull	0.015	Whiteqtz vein
550237	635,259	7,654,546	John Bull	0.039	Light grey white qtz vein with fresh and tarnishedpyr
550238	635,262	7,654,545	John Bull	0.174	Porphyry‐ light grey with trace pyrite (mainlyon surfaces)andqtz veins
550239	635,236	7,654,503	John Bull	0.062	Qtz breccia veining in light grey felsic porphyry
550240	635,100	7,654,387	John Bull	0.004	Whiteqtz vein
550241	635,169	7,654,465	John Bull	2.72	White qtz vein in strongly crb altered mafic
550242	635,134	7,654,508	John Bull	0.317	Pyritic (tarnishing) white qtz vein and yellow sulphates
550314	635,529	7,655,033	John Bull	0.007	Fine grained quartz porphyry with minor ex‐pyrite
550315	635,542	7,655,059	John Bull	0.016	Fine grained blue‐grey quartz porphyry
550316	635,607	7,655,099	John Bull	0.027	White coarse grained porphyry with ex‐pyrite. Highlyweathered
550317	635,622	7,655,110	John Bull	0.032	Fine grained highly siliceous blue‐grey porphyry. Possibly a few ex‐pyrite holes.
550318	635,642	7,655,138	John Bull	0.154	Quartz vein in finegrainedporphyry

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

10
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample	Easting	North	Prospect	**Auppm **	Description
550319	635,665	7,655,165	John Bull	0.164	Whiteporphyrywith minor ex‐pyrite
550320	635,685	7,655171	John Bull	0.035	Fine grained porphyry with dark cubes ‐ sulphides or carbonate. Highly weathered.
550321	635,708	7,655182	John Bull	0.052	Fine grained quartz porphyry with pale green colour (sericite alteration) and fine disseminatedpyrite
550322	635,722	7,655202	John Bull	0.012	Dark purple zone within blue‐grey porphyry. Veryfinegrained.
550323	635,731	7,655219	John Bull	0.002	Dark purple zone in grey‐blue porphyry. Fine grained with 2mm quartz eyes.
550324	635,741	7,655250	John Bull	0.012	Dark purple fine grained zone with up to 2mmquartz eyes.
550325	635,756	7,655277	John Bull	0.003	Blue grey porphyry on western edge of outcrop.
550326	635,769	7,655306	John Bull	0.024	Coarse grained. Grey‐blue porphyry with ex‐pyrite.
550327	635,773	7,655328	John Bull	‐0.001	Coarsegrained mafic rock.
550328	635,772	7,655325	John Bull	0.014	Fine grained sediment approx. 70cm thick between mafic andporphyry.
550329	635,769	7,655327	John Bull	0.019	Felsic porphyry with fine grained and disseminatedpyrite.
550330	635,794	7,655343	John Bull	0.039	Whiteporphyrywith minor ex‐pyrite
550331	635,817	7,655392	John Bull	0.008	Quartz‐feldspar porphyry. Dark purple when fresh.
550332	635,805	7,655400	John Bull	0.104	Quartzporphyry
550333	635,808	7,655391	John Bull	0.002	Fine grained mafic intrusion between twoporphyryunits.
550334	635,811	7,655441	John Bull	0.033	Fine grained blue‐grey porphyry with minor ex‐pyrite.
550335	635,864	7,655499	John Bull	0.074	Blue‐grey porphyrywith minorpyrite.
550336	635,738	7,655571	John Bull	‐0.001	Mafic with weak carbonate alteration andquartz stringers
550337	635,820	7,655485	John Bull	‐0.001	Mafic to the west of the porphyry. Finegrained and massive.
550338	635,969	7,655367	John Bull	0.007	Fine grained sediment with carbonate stringers.
550339	635,992	7,655347	John Bull	0.003	Basalt with carbonate alteration and carbonate veins with tremolite on fractures.
550340	636,009	7,655405	John Bull	0.021	Sediment. Fine grained with minor quartz and carbonate veins.
550341	636,013	7,655397	John Bull	0.005	Mafic with carbonate alteration and minor ex‐pyrite.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

11
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample	Easting	North	Prospect	**Auppm **	Description
550342	635,989	7,655361	John Bull	0.002	Quartz‐chlorite vein on boundary between sediments and carbonate altered mafic.
550343	635,803	7,655,303	John Bull	0.024	Cross‐cutting quartz veins in fine grained mafic sediment.
550344	635,471	7,654,968	John Bull	0.017	Whitequartzporphyry
550345	635,337	7,654,727	John Bull	0.059	Felsic volcanic ‐ fine grained‐ grey‐ blue colour.
550346	635,333	7,654,722	John Bull	0.032	Fine grained quartz porphyry with ex‐ pyrite.
550347	635,334	7,654,725	John Bull	0.006	Sediments (greywacke) adjacent to felsics‐ with carbonate veining.
550348	635,233	7,654,648	John Bull	0.019	Fine grained quartz porphyry ‐ blue greywith minorpyrite.
550349	635,111	7,654,636	John Bull	0.028	Quartzporphyrywith minor ex‐pyrite.
550350	635,010	7,654,586	John Bull	0.005	Felsic volcanic.
550351	634,764	7,654,163	John Bull	0.048	Mafic rock (basalt) with minor quartz stringers andquartz vein.
550352	634,734	7,654,045	John Bull	0.013	Quartz‐feldsparporphyry.
550353	634,716	7,654,027	John Bull	0.005	Quartz vein in fine grained ultramafic rock
550354	634,426	7,654,003	John Bull	0.003	Mafic rock.
550355	635,697	7,653,657	John Bull	0.015	Quartz porphyry with fine grained disseminated ex‐pyrite and cross‐ cutting quartz veins.
550356	635,685	7,653,648	John Bull	0.001	Carbonate altered basalt.
550357	635,672	7,653,606	John Bull	0.004	Sediment (greywacke) with quartz veins and carbonate veins.
550358	635,663	7,653,645	John Bull	0.008	White quartz porphyry with quartz stringers and minor ex‐pyrite.
550359	635,612	7,653,662	John Bull	4.2	Highly silicified rock ‐ possibly originally sedimentary with quartz vein.
550360	636,165	7,655,916	John Bull	0.029	Darkpurplequartzporphyry
550361	636,162	7,655,947	John Bull	0.016	Quartz porphyry with minor disseminated ex‐pyrite.
55108	633,635	7,656,582	Last Chance	6.93	Quartz veining + proximised wall rock
55109	633,648	7,656,602	Last Chance	45.5	Laminated quartz vein
55110	633,802	7,656,779	Last Chance	0.168	Strongly carbonated mafic rock
55048	636,710	7,657,377	Princess May	33.2	Quartz carbonate vein
55049	636,737	7,657,494	Princess May	0.303	Carbonated mafic

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

12
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Sample Easting

g North Prospect Au ppm Description 636,737 7,657,494 Princess 0.199 Quartz carbonate vein May

55050

Notes: All coordinates reported in MGA94‐Zone 50

APPENDIX 2: JORC Code, 2012 Edition‐ Section 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Comments
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	Reconnaissance rock chip sampling (152 samples) was completed by De Grey Mining Ltd in 2008.  Rock chip conducted by visual identification of prospective lithological and gossanous units within the historical Pilbara Well Greenstone Belt. Location of samples was determined using a handheld Garmin GPS unit with an accuracy of +/‐5m  Rock samples (De Grey) were sent to UltraTrace in Perth, where they were dried, crushed, pulverised and split to produce a sub–sample for Aqua Regia digestion on a 50g sample with Atomic Absorption Spectroscopy undertaken to determine gold content with a detection limit of 0.005ppm. All other elements (18 in total) were read by inductively coupled plasma – optical emission spectroscopy technique (ICP‐OES) (Ag, As, Ba, Bi, Hg, Li, Mo, Pt, Sb, Sn, U and W) with various detection limits or inductively coupled plasma – mass spectroscopy (Cu, Fe, Mn, Ni, Pb, and Zn).
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Rock chip samples taken typically weigh in the range of 3 to 4kg. Representativeness cannot be ascertained as it was not recorded.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules)maywarrant disclosure of detailed information.	A 3‐4kg rock chip sample was sampled and sent for analysis at Ultratrace laboratory in Perth where the sample was dried, crushed, pulverised and split to produce a 50g sub sample. The sub sample underwent Aqua Regia Digestion with Atomic Absorption Spectroscopy for gold and Inductively Coupled Plasma‐Optical Emission Spectroscopy for base metals.
Drilling techniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so,bywhat method,etc).	No drilling conducted.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	No drilling conducted.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	No drilling conducted.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material.	No drilling conducted.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	No drilling conducted.
	Whether logging is qualitative or quantitative in nature. Core(or costean,channel,etc) photography.	Rock chip samples were visually logged and some photographed
	The total length and percentage of the relevant intersections logged.	No drilling conducted
Sub‐ sampling	If core, whether cut or sawn and whether quarter, half or all core taken.	No diamond drilling completed

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

13
----- End of picture text -----

ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

Criteria	JORC Code explanation	Comments
techniques and sample preparation	If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	3 to 4 kg rock chip sample was collected from the selected outcrops
	For all sample types, the nature, quality and appropriateness of the sample preparation techniques	Whole rock samples were submitted to UltraTrace for crushing, grinding and assaying in accordance with industry best practices. No field preparation of samples was conducted
	Quality control procedures adopted for all sub‐sampling stages to maximise representivityof samples.	No QC procedures are documented
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second‐half sampling.	No QAQC procedures are documented
	Whether sample sizes are appropriate to the grain size of the material beingsampled.	Sufficient sample mass was collected to provide a representative sample.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is consideredpartial or total.	Samples were submitted to UltraTrace for sample preparation and analysis using aqua regia digestion and read by graphite furnace for gold and ICP‐mass spectrometry or optical emission spectrometryfor other elements
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools utilised.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.	No QAQC samples reported
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	No drilling completed.
	The use of twinned holes.	No drillingcompleted.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	No documentation available with respect to capture of primary data. Data available through WAMEX report system was captured into a validated GIS database.
	Discuss anyadjustment to assaydata.	No adjustments wereperformed to data.
Location of Data Points	Accuracy and quality of surveys used to locate drill holes (collar and down‐hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Samples were located using a Garmin handheld GPS with an accuracy of +/‐ 5m (De Grey).
	Specification of thegrid system used.	MGA94‐ Zone 50
	Qualityand adequacyof topographic control.	Topographic control usingGPS is more than adequate for rock chipsampling.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Rock chip sampling was completed across areas of geological interest. Sampling was not completed on a regulargrid.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimationprocedure(s)and classifications applied.	Sampling reported is of reconnaissance nature and not for the purposes of the delineation of a mineral resource.
	Whether sample compositinghas been applied.	No compositingapplied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known,consideringthe deposit type.	Sampling was selective to determine the tenor and nature of mineralisation.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	No drilling reported.
Sample security	The measures taken to ensure sample security.	No documentation exists with respect to sample security protocol.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been conducted.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

14
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

JORC Code, 2012 Edition‐ Section 2

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or nationalpark and environmental settings.	The granted Exploration Licence E47/3566 has been acquired by Clancy Exploration Ltd
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Exploration Licence is located wholly within the Yandeyarra Aboriginal Reserve. Access permits and consent is required in order to operate within the Exploration Licence.
Exploration	Acknowledgment and appraisal of exploration by other parties.	Exploration has been ongoing since 1998 through various parties: the Farno group, Bullion, Chalice Gold Mines and De Grey Mining mainly through option arrangements with the previous owner. The data pertainingto these exploration activities ispresented in this report.
Geology	Deposit type, geological setting and style of mineralisation.	The Hong Kong Project is located along the southeastern margin of the Pilbara Well Greenstone Belt. The northeasterly trending greenstone belt is up to 8.6km wide and forms a northeast‐plunging synform over a strike length of 40km. The PWGB has experienced multiple phases of ductile deformation and metamorphism, and consists mainly of basalts and ultramafic rocks, with silicified sedimentary rocks. Several chert interbeds, and minor metamorphosed felsic volcanic and sedimentary units occur within the mafic–ultramafic sequence. Goldmineralisation parallels lithological contacts and foliation in amphibolite host rocks located in the highly sheared margin to the Yule Granitic Complex. Bedrock‐hosted gold was mined from metre‐scale, foliation‐parallel quartz veins, however, vein widths can be as great 20 metres wide and strike northeast over several hundred metres. Gold is hosted in quartz‐carbonate veins in carbonated mafic to ultramafic rocks, and represent typical Archaean orogenic gold deposits. Gold is most likely concentrated in shear zones and the faulted contacts between units of contrasting competencies and lithology. Sericite and carbonate alteration, with secondary malachite, chalcopyrite, and sphalerite is often associated withgold.
Drill Hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	No drilling reported.
	o easting and northing of the drill hole collar	No drilling reported.
	o elevation or RL (Reduced Level – elevation above sea level in metres)of the drill hole collar	No drilling reported.
	o dip and azimuth of the hole	No drilling reported.
	o down hole length and interception depth	No drilling reported.
	o hole length.	No drilling reported.
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	All available historical exploration information has been included in the release. A more comprehensive evaluation of activities conducted across the Project historically is underway.
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut‐off grades are usuallyMaterial and should be stated.	No modification of results was performed.
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	No aggregation of data was conducted.
	The assumptions used for any reporting of metal equivalent values should be clearlystated.	No metal equivalents are reported.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reportingof Exploration Results.	No drilling reported.
	If the geometry of the mineralisation with respect to the drill hole angle is known,its nature should be reported.	No drilling reported.
	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	No drilling reported.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Plans of project geology, targets, historical workings have been included in the body of this release.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

15
----- End of picture text -----

Clancy Exploration Limited (ASX: CLY)

ASX / Media Announcement

Criteria	JORC Code explanation	Commentary
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results including those with no significant results have been included in the release.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All available information has been included in the release.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large‐scale step‐out drilling).	An extensive review of the open file information relating to the Project will be completed in conjunction with a detailed geological mapping program targeting the contact between the base of the Lower Fortescue Groupand underlyingArchaean lithologies.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	Further releases will be made to market upon completion of further exploration planning.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

16
----- End of picture text -----